Petroreconcavo (RECV3) Investor presentation summary

Company overview and operational highlights

• Leading independent onshore oil and gas producer in Brazil with 32 owned and 23 operated concessions, and 741 producing wells across Bahia, Sergipe, and Rio Grande do Norte.

• Net revenue reached R$ 1.5 billion, EBITDA R$ 706 million, and net debt R$ 1.4 billion with leverage at 1.01x.

• Production averaged 24.2 kboed in 1H26, with 2P reserves of 182.2 MMboe and a reserve replacement ratio of 1.0x.

• Strategic focus on subsurface management, operational reliability, and excellence in execution.

• Expansion includes new midstream assets and deep/horizontal well drilling.

Production strategy and asset development

• Mature field transformation through secondary recovery, water injection, and reservoir stimulation, leading to incremental production.

• Water injection projects reduced decline rates, increased recovery factors, and extended asset life, with a 40% increase in injection volume from 2025 to 2026.

• Production aligned with development plans, with 1,526 workovers and 15 new wells drilled in 2025.

• New long-term contract with Brava Energia enhances outflow flexibility and access to international markets.

Financial performance and cost management

• Net revenue growth driven by higher Brent prices, improved product mix, and better commercial terms.

• Oil hedging strategy with NDFs and zero-cost collars mitigates price volatility, impacting both revenue and financial results.

• Operational and administrative costs reduced, with lower G&A and midstream expenses, despite one-off impacts from maintenance and royalties.

• EBITDA margin expanded to 50.3% in 2Q26, with disciplined Capex allocation and breakeven cash cost at US$ 30.85/boe.

• Strong free cash generation, low leverage (1.01x), and a robust debt repayment schedule support shareholder returns.